A Study On The Function Mechanism Of Human Capital On Export Commodity Structure

The changing of China from a large trader into a powerful trading country, ties in with the optimization of the export commodity structure. A number of scholars have analysed the export commodity structure and optimization using factor endowments, from the technological progress and FDI point of view. While this article extend that analysis to take into consideration the influence of factors to human capital. On the basis of reviews at home and abroad, related literature on human capital can impact international trade, this analysis of the mechanism frame of human capital affects export commodity and structure, as do empirical tests according to relative Chinese data. Finally, according to research results put forward, relevant policy suggestions were made.First, this article on analysing human capital stock affects the export commodity structure. The increase of human capital stock may improve workers rights and other production factors such as productivity causing optimal resource allocation, increasing levels of industrial structure towards a higher level thereby upgrading the export commodity structure. Human capital stock has an effect on technological invention, innovation, diffusion and application, and may help to realize technological advances and thereby upgrade the export commodity structure. The increase of human capital stock could attract FDI, and the FDI's direct effect and indirect effects to promote an export commodity structure optimization.Second, this analysis of human capital structure effect export commodity. Human capital structure influences a countries labor's career choices in incompleted labor contracts. In human capital allocation diversification, country workers are more willing to enter industries where weak individual skills are accepted, so their has an advantage re products requiring significant personal contributions, this make this countries exports"significant personal contributions products"and import significant team contributions products. In homogenizing, workers are more willing to enter industries that need team work, therefore their has an advantage in products of significant team contribution and products. Finally, this article considers empirical tests using Chinese data from 1980 to 2007, and the conclusion is that an increase in human capital stock could increase the proportion of capital-intensive products in manufactured products. It could also improve the manufactured products trade competition index. Increasing human capital stock has improved China's export commodity structure and optimization. This article puts forward relevant policy suggestions, including increasing the investment in human capital, optimizing human capital allocation and increasing added-value of products.